The interest in cryptocurrencies, DeFi solutions, and NFTs has never been so high. Constant and growing attention has been given to this industry by the mainstream media, major institutions, and regulatory authorities. Consider that the total market capitalization of the whole crypto market reached USD 3 trillion at the end of 2021, and there is currently a daily transaction volume of more than 120B USD, according to coinmarketcap.com. Bitcoin alone reached an all-time high of over USD 68,000 and, by itself, a market cap of more than USD 1.25 trillion. People's interest in crypto has skyrocketed, not only among investors but also in popular culture. Yahoo Finance is predicting that by the end of 2022, there will be more than 1 billion crypto users. The WEF predicted that blockchain and distributed ledger technologies would create up to 10% of the world GDP by 2022. According to Allied Markets, it is expected that the cryptocurrency market will more than triple by 2030, with an annual growth rate of 12.8% between 2021 and 2030. Other growth rate predictions are even more optimistic, estimating that by 2030 over 5 billion people will use cryptocurrencies for daily payments.
The main drivers of this spectacular growth will be increased demand for international remittances and more transparency in global payments systems by introducing the first government issued stablecoins, like the digital Euro or Swiss Franc. Cryptocurrencies are also being heavily used to finance multiple charities like we are now seeing in the Russia-Ukrainian crisis. The regulation of crypto assets is also reaching a steppingstone, with an example like the country of El-Salvador, which adopted Bitcoin as a legal tender in late 2021. Another example is the City of Lugano in Switzerland, which recently started to accept cryptocurrency payments for administrative, tax, and bureaucratic services widely, following the example of Zug a few years ago.
DeFi Market Overview
More specifically, the TVL, or total value locked up in the liquidity pool, has reached approximately 100 billion USD. Nevertheless, these amounts are a tiny fraction of the global financial service industry, whose value is estimated to be north of 20 trillion USD. The growth potential in DeFi in the long term is comparable to the value of Amazon and Google in the late nineties. Multiple DeFi solutions beat the market's volatility, as they persistently provide significantly higher returns than leaving the funds sitting in the retail banks’ accounts that pay around 0.25% APY.
NFT Market Overview
It has been estimated that the NFT market was valued somewhere between 16 and 40 billion USD. In 2021 alone, the NFT market experienced tremendous exponential growth, calculated at more than 210 times the value of 2020. Every week more than 15 million USD of NFT are being sold. On average, NFT prices are below 200 USD, but specific, very successful collections like crypto punks are traded daily for hundreds to thousands of ETH, with an absolute record made by "The First 500 Days" of Beeple selling for more than 38000 ETH. Otherwise, another valuable and recent use case of NFTs can be seen in the metaverse and GameFi applications, where the NFTs are used as game avatars, upgradeable items, in-game assets, or virtual land and virtual properties. For example, last November, six thousand virtual square feet of Dencentraland were sold for a record-breaking 2.4 million USD. The concept behind NFT was created in 2014, but only since last year has the broad population started to understand its real value as digital proof of ownership of assets. It is not a secret that NFTs are being investigated by many large corporations and beginning to be incorporated into their business models and operations. All these factors indicate that the demand for innovative services and passive income solutions like the one that Ultron is planning to deploy with its ecosystem will continue to grow.